Invesco Real Estate, manager of almost $50 billion of property investments, wanted to expand the number of apartment buildings it owned in Manhattan.

To do so, it had to start thinking small.The Dallas-based company, which has more than 51,000 apartments across the U.S., entered a partnership in October to buy a 48-unit property on East 86th Street for $76 million.“It’s the smallest in any city we’ve bought,” said Greg Kraus, head of acquisitions at Invesco Real Estate.Investors, seeking to capitalize on rents poised to surpass their 2006 peak, are buying Manhattan properties with fewer than 50 units after a surge in demand drained the market of bigger buildings. Bidding wars for the few large towers that are for sale drive prices so high that buyers in search of yield must look elsewhere, said Ben Carlos Thypin, an analyst at Real Capital Analytics Inc. Smaller properties, which tend to be older, offer opportunities for higher income after renovations, making them appealing as rent growth slows.Read More: http://www.bloomberg.com/news/2013-03-20/nyc-apartment-investors-seek-big-returns-by-buying-small.html

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Ben Carlos Thypin

I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.